BMW has been able to increase its sales. This is nice, but an exception. Ten of the 16 largest car maker, it looks different: The sales rise, but profits are shrinking, as a recent study shows.
“All of the major sales markets to shrink. This leads to a stronger price pressure and declining margins. Add to that a high level of investment in areas such as Autonomous Driving and electric mobility.” So Constantin Gall summarizes the results of a study published by the consulting Firm EY (formerly Ernst&Young) on Wednesday. Gall is the head of the Automotive & Transportation at EY.
However, the problems of the automotive industry are not all home-made. The car maker had with a more and more difficult and opaque’ll market environment to fight: “The global auto industry is in a sales and profit crisis that is currently caused in the first place economically.”
Falling margins on rising sales
Had studied EY is the world’s 16th largest car manufacturer, among them the German brands BMW, Daimler and the Volkswagen group. In sales, the majority of these companies was able to grow – thanks to the SUV boom.
The German manufacturer recorded a sales increase of 5.2 per cent, ahead of the French companies (4.7 percent) the largest increase. In the case of the US companies (minus three percent) and the Japanese manufacturers (minus 1.3 percent) to the turnover, however.
Overall, sales of the company rose by 1.3 percent, which rose to a new all-time high. “Sales champion” was in the second quarter, Volkswagen Toyota.
If something sells, then it is large, heavy and really thirsty Auos.
Less cars will find a buyer
The sales could be increased, not to hit the on the sales figures: The strongest Declines were recorded in the U.S.-manufacturers-minus-nine and the French corporations with minus ten percent. In the Ranking of the best-selling car companies Toyota, thanks to a sales growth of four percent, which is slightly ahead of Volkswagen, which recorded a Minus of two percent.
Generally, the German companies will have to come in the paragraph with a loss to cope. An exception to BMW forms: As the three Japanese manufacturers Mitsubishi, Honda and Toyota, the Munich were able to increase the sales.
The German is still quite good
However, despite the overall weak profit situation of German companies their cars are in the world continues to be very popular. This is also shown in the General paragraph a minus: it is very little, especially compared to the competition from the USA and France.
The decline in Peter foot, a Partner of EY leads that of the presentation of the study on “the lack of availability of models and upcoming model change”. In the second half of the year, sales growth is quite possible., because “operationally, it runs in the business-not bad – you win market share worldwide, progress in the electrification of the model range, and will reduce with harsh austerity measures, the costs again.”
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The machinations of the automotive industry
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The machinations of the automotive industry
In the case of the German car effects are forging especially “once” for the Profit declines in These companies have cleared the “last large-scale Contaminated sites from the balance sheet. Topics such as the diesel crisis, antitrust allegations, or recalls due to defective Airbags have led in recent years to a substantial fall in profits.”
The Parking in front of the plants are fully
When you look in the warehouse and on the Parking of the car maker EY Partner, Peter foot, sees another Problem on the car maker to come: According to the sales slump, Overcapacity threatened now, because the current decreases in Sales volumes were relatively come unexpectedly: “it is Precisely the shrinking Chinese market has caught some suppliers off on the wrong foot. It’s not like the optimistic plans of many companies that had set on further growth.”
According to Peter, the foot will not change this scenario in the short term. On the contrary, The Situation in China will “always uncomfortable”. The to are currently to come, especially the French and US-American car manufacturers tax, the sales in the increasingly important broke the car market of China in the second quarter to 14 and 55 percent.
The major risks
The hope of a speedy improvement in the political situation, and thus the market environment for the auto makers but could be deceptive, so Peter’s feet. So a hard Brexit will always be more likely that would lead to significant losses on the European market. China is also ready “In China, the German car companies are, despite the current market weakness is currently well on the way. If the trade dispute with the US escalated, but will also get the German car industry is increasingly felt.”
A look at the drive, Parking the VW in the Chinese city of Changchun shows, such as “Overcapacity” can look like.
The start of a “selection process”
The real challenges lie before the industry, emphasizes Constantin Gall EY: “In the coming years, the cards will be reshuffled. Stricter emission limit values and the advance of electric mobility are leading to unprecedented upheavals – which not all the company has grown to be.”
Therefore, the Trend towards more collaborations and partnerships, which were partly very far, expected Gall: “the Only way the enormous costs and risks to get the future investment in the handle. In any case, we are at the beginning of a selection process.